MULTIYEAR PROCUREMENT CONTRACTS.

SEC. 806. MULTIYEAR PROCUREMENT CONTRACTS. (a) Requirement for Authorization by Law in Acts Other Than Appropriations Acts.—(1) Subsection (i) of section 2306b of title 10, United States Code, is amended by adding at the end the following new paragraph: “(3) In the case of the Department of Defense, a multiyear contract in an amount equal to or greater than $500,000,000 may not be entered into for any fiscal year under this section unless the contract is specifically authorized by law in an Act other than an appropriations Act.”. (2) Paragraph (3) of section 2306b(i) of title 10, United States Code, as added by paragraph (1), shall not apply with respect to a contract authorized by law before the date of the enactment of this Act. (b) Codification of Annual Recurring Multiyear Procurement Requirements.—(1) Such section is further amended by adding at the end the following new subsection: “(l) Various Additional Requirements With Respect to Multiyear Defense Contracts.—(1) (A) The head of an agency may not initiate a contract described in subparagraph (B) unless the congressional defense committees are notified of the proposed contract at least 30 days in advance of the award of the proposed contract. “(B) Subparagraph (A) applies to the following contracts: “(i) A multiyear contract— “(I) that employs economic order quantity procurement in excess of $20,000,000 in any one year of the contract; or “(II) that includes an unfunded contingent liability in excess of $20,000,000. “(ii) Any contract for advance procurement leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year. “(2) The head of an agency may not initiate a multiyear contract for which the economic order quantity advance procurement is not funded at least to the limits of the Government’s liability. “(3) The head of an agency may not initiate a multiyear procurement contract for any system (or component thereof) if the value of the multiyear contract would exceed $500,000,000 unless authority for the contract is specifically provided in an appropriations Act.111 STAT. 1835 “(4) The head of an agency may not terminate a multiyear procurement contract until 10 days after the date on which notice of the proposed termination is provided to the congressional defense committees. “(5) The execution of multiyear contracting authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement. “(6) This subsection does not apply to the National Aeronautics and Space Administration or to the Coast Guard. “(7) In this subsection, the term ‘congressional defense committees’ means the following: “(A) The Committee on Armed Services of the Senate and the Subcommittee on Defense of the Committee on Appropriations of the Senate. “(B) The Committee on National Security of the House of Representatives and the Subcommittee on National Security of the Committee on Appropriations of the House of Representatives”. (2) The amendment made by paragraph (1) shall take effect on October 1, 1998. (c) Technical and Conforming Amendments.—Such section is further amended as follows: (1) Subsection (a) is amended— (A) by striking out “finds—” in the matter preceding paragraph (1) and inserting in lieu thereof “finds each of the following:”; (B) by capitalizing the initial letter of the first word in each of paragraphs (1) through (6); (C) by striking out the semicolon at the end of paragraphs (1) through (4) and inserting in lieu thereof a period; and (D) by striking out and” at the end of paragraph (5) and inserting in lieu thereof a period. (2) Subsection (d)(1) is amended by striking out “paragraph (1)” and inserting in lieu thereof “subsection (a)”. (3) Subsection (i)(1) is amended by striking “five-year” and inserting in lieu thereof “future-years”.